Oxfam shop sales rise to £90m as recession-hit shoppers hunt bargains

Charity reports 5% increase in retail sales last year, but says it is concerned that ongoing financial crisis will hit income this year

Oxfam's retail boost contrasts sharply with many traditional shops on the high street who have seen sales hit by the recession. Photograph: Ray Tang / Rex Features Ray Tang / Rex Features/Ray Tang / Rex Features

Oxfam has reported a sharp increase in sales from its high street shops, offering the latest example of changing habits amid the bleak economic conditions.

With much of the high street struggling – Marks & Spencer recently reported a near 7% decline in sales – Oxfam said it had enjoyed growth of 5% as shoppers hunt for bargains, taking its retail sales last year to £90m.

The charity says it has benefitted from new customers in the recession but that sales are more dependent on what people donate to the shops.

"Selling good quality donated goods is easy," said Oxfam's finance director Bob Humphreys. "The difficulty is to get the flow of donated goods through. We work with a lot of major supermarkets, so we've got clothes banks in Sainsbury car parks, but primarily it is people clearing out their wardrobes on a regular basis."

The pattern has been repeated among other charities. The Charity Retail Association says sales at charity shops rose 3% in the first quarter compared with the same period last year. That contrasts sharply with commercial shops, which saw a 0.1% drop in like-for-like sales in the first quarter, according to figures from the British Retail Consortium.

Britons also continued to donate money to Oxfam, despite the tough economic times. Voluntary income from appeals, fundraising events and one-off donations increased by 6.6%, although regular donations fell slightly. Humphreys says: "The number of people who cancelled [their direct debits] hasn't really gone up at all. We can only put that down to the fact that, when people support charities it's one of the last things they want to cut back on."

Overall, income from fundraising rose by 8%, lifted by large donations from governments and public bodies such as the UN, in particular in response to the east Africa food crisis and the flood in Pakistan.

But Oxfam is concerned about how the ongoing financial crisis will hit income this year. "In individual giving, of course we are worried," says Humphreys. "It's only a couple of months since the UK fell into a double dip recession. That's happening to an increasing number of eurozone countries. Combined with the pressure from austerity measures, that's bound to have an impact on our supporters. But touch wood, things seem to be going OK."

In total, Oxfam raised £385.5m in the year to March, up 5% on the previous year. It estimates that it reached 15 million people in 55 countries, many suffering in emergencies that did not reach the news, such as drought in Afghanistan, floods in Cambodia, a cholera outbreak in Chad and a typhoon in the Philippines.

Humphreys says there is no reason to believe people are growing tired of being asked for money. "Oxfam has been going for the last 70 years. While people always talk about donor fatigue, experience would show when there is a genuine disaster people want to reach out and help." "

Browsing in the Oxfam shop on Upper Street in London, Clare, 45, is one of those who says she has been buying more in charity shops recently. "I have a limited income, I'm self-employed. I tend to browse when I go past. I bring in a lot of stuff as well. I like the principle of it; the idea that you're recycling things."

Students David and Amelia, both 19, were also looking for a bargain. "We're poor because we're students," says Amelia. "And sometimes they have vintage stuff cheaper than in vintage shops." David chips in. "It's more like a jumble sale. You come in a lot and get something one in every 10 times."